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Sergio [31]
2 years ago
14

a face value of $450 million. The bonds pay interest each March 31 and September 30, beginning March 31, 2022. The effective int

erest rate established by the market was 8%. Assuming that Auerbach issued the bonds for $388,844,955, what interest expense would it recognize in its 2021 income statement
Business
1 answer:
Vitek1552 [10]2 years ago
7 0

Answer:

$7,776,899

Explanation:

Calculation to determine what interest expense would it recognize in its 2021 income statement

Interest expense= $388,844,955 * 8% * (3 months/12 months)

Interest expense= $31,107,596.4 * 3/12

Interest expense= $7,776,899

Therefore the interest expense that would be recognize in its 2021 income statement is $7,776,899

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ivann1987 [24]

Answer:

i want to see the answer to this question

3 0
2 years ago
The degree of operating leverage can be measured by​ ________. A. multiplying the contribution margin by sales revenue B. dividi
Varvara68 [4.7K]

Answer:

Option C is the answer

Explanation:

The degree of operating leverage is measured by dividing the contribution margin by operating income.

The degree of operating leverage (DOL) is the ratio of contribution margin to operating income. It measures how much the operating income of a company will change in response to a change in sales. A Companies that have higher proportion of fixed costs to variable cost will have greater levels of operating leverage.

4 0
3 years ago
Madrid Company plans to issue 9% bonds with a par value of $5,300,000. The company sells $4,770,000 of the bonds at par on Janua
ASHA 777 [7]

Answer and Explanation:

The journal entry are as follows

1. Interest expense $214,650

       To Cash $214,650

(Being the first interest payment is recorded)

The computation is shown below

= $4,770,000 × 9%  × 6 months ÷ 12 months

= $214,650

For recording this we debited the interest expense as it increased the expenses while on the other hand the cash is paid which reduced the cash balance so it is credited

2. Cash $530,000

      To Bond payable $530,000

(Being the cash sale of bond is recorded)

For recording this we debited the cash as cash is received that increased the cash balance and at the same time we credited the bond payable

5 0
3 years ago
If a competitive firm can sell a bushel of soybeans for $25 and it has an average variable cost of $24 per bushel and the margin
Liula [17]

Answer: reduce output.

Explanation:

In a competitive market, firms do not have control over the price that they sell their goods in the market but they do have control over their costs. It is recommended to produce/ sell goods at a quantity where Marginal Revenue will equal Marginal cost (MR = MC).

In a Competitive Market, Price is the same as Marginal revenue which means that Marginal revenue here is $25 and the Marginal Cost is $26. At this quantity of output, the Marginal Cost is larger than the Marginal revenue.

Company should therefore reduce output to a quantity where Marginal Cost will equal Marginal revenue.

6 0
2 years ago
In the ethical decision making process, moral imagination is used by decision makers while ________.
lapo4ka [179]

In the ethical decision making process, moral imagination is used by decision makers while they consider available alternatives to make an effective decision.

<h3>Ethical decision-making process</h3>

It is essential that this process is guided by the company's set of policies and requirements, which are in compliance with legal norms and promote the development of organizational systems.

Therefore, decision makers need to identify the nature of the decision and the necessary information that will help to consider the available alternatives for the decision to develop possible resolutions and the assessment of the impact of their decision.

The choice of ethical decision must always be prioritized in favor of maintaining organizational transparency that generates greater reliability and positioning in the market.

Find out more information about decision making process here:

brainly.com/question/24864682

7 0
2 years ago
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